The newsletter of the ISBA’s Section on Trusts & Estates

Newsletter articles from 2004

The alternate valuation dateBy Alexander DenenbergJune 2004In the Private Letter Ruling 2003-43-002 (June 11, 2003), the Internal Revenue Service addressed the issue of whether the earnings of a corporation during the six-month period after decedent's death that were not distributed to the decedent's estate should be treated as "included property" or "excluded property" for purposes of Code § 2032.

Comparison of transfer techniquesBy Jay S. GoldenbergDecember 2004Tax planning is a quantitative matter. No matter how good a technique sounds, we don't know anything until we actually run the numbers.

Did you ever wonder…?By Philip E. KoenigJune 2004Did you ever wonder why most standard will and trust clauses direct an executor to pay all of the Decedent's debts "except those debts which are secured by an interest in real estate, beneficial interest in a land trust, a cooperative or by an assignment of a life insurance policy?"

Family Limited Partnerships: Yes!… No!… Well, maybe!By Robert WeberDecember 2004After the Courts came in with their decisions in the Strangi case, and the Hackl case, the IRS rubbed their hands in glee, and estate planners went out looking for black clothes and sack cloth to mourn the end of the Family Limited Partnership method to try to preserve estate assets.

From the editorDecember 2004Our initial article by Jay Goldenberg is a side-by-side comparison of certain estate-planning transfer techniques of company stock.

From the editorsOctober 2004This edition of the newsletter marks a partial change in the editorial guard: Mark Zumdahl of Sterling has accepted a leadership role in the Section Council and sadly has edited his last piece for now.

From the editorsJune 2004We have several thought-provoking articles in this month's issue. Phil Koenig of Rock Island discusses will and trust clauses concerning payment of the decedent's debts.

From the editorsFebruary 2004This issue has two important articles. The first is authored by Susan Kubar, of Quarles & Brady, from Naples, Florida, submitted by Section Council Member Tom Polachek.

Illinois decisionsBy Mark E. ZumdahlFebruary 2004In re Estate of Madison Rae Poolwas first noted in the June 2002 newsletter when the Third District Appellate Court reversed the decision of the circuit court of Putnam County, denying Petitioner Randy Pool's Petition to Revoke Letters of Administration issued to Debra Jean Clausen.

Intestate transfer does not satisfy “otherwise given” for purposes of stock purchase agreementBy Christopher M. Tietz and David A. BerekSeptember 2004In Opiela v. Roth, decided June 17, 2004, the Illinois Supreme Court held that stock of a closely held company which was subject to a Stock Purchase Agreement (“the Agreement”) between the company and a decedent, was not given by the decedent on his death to his descendants through intestate succession, but rather remained subject to the Agreement, and accordingly the company was entitled to purchase the shares.

Recent decisionsBy James K. SayJune 2004In re Estate of Schlenker, Docket No. 96402 (Ill. Sup. Ct. April 1, 2004). Levi Schlenker had executed four wills before his death in July of 2001, of which only three were found.

Tax rulingsBy James K. SayDecember 2004PLRs 2004-32027, 2004-32028, and 2004-32029 (8/6/04) were requests brought by three siblings to determine whether an IRA owned by their father could still be subdivided to each of them, even though the IRA had passed through a trust which had itself paid various estate and administrative expenses from IRA assets.

Total Return technical amendmentsBy Lyman W. WelchOctober 2004Technical amendments to the Illinois Total Return Trust Law became effective August 23, 2004 when HR 1080 became Public Act 930991.

Using the irrevocable insurance trustBy Jay S. GoldbergJune 2004Many of us are familiar with the Irrevocable Insurance Trust ("ILIT") as a direct means of leaving tax-free benefits to the family. This article will discuss other uses of the tool.